AUD/USD: First on high and then to lows as AU-China data play their roles

• AUD/USD remains volatile around 0.7130 on Thursday morning.
• The early-day release of AU Capex pushed the pair to highs but weaker China manufacturing PMI dragged the quote down.
• Friday’s Caixin Manufacturing PMI and the US-China trade negotiations can direct near-term moves.

AUD/USD trades near the intra-day low of 0.7130 on early Thursday. The pair initially rose to the day’s high of 0.7165 on AU quarterly Capex details but then dropped afterward as China’s NBS purchasing manager index (PMI) disappointed Aussie buyers. Next up in the radar will be China’s Caixin manufacturing PMI on Friday together with on-going developments surrounding the US-China trade talks.

Earlier on Thursday, the fourth quarter (Q4) 2018, private capital expenditure from Australia pleased the Aussie buyers as it increased by 2.0% bearing 0.5% forecast and -0.5% prior to contraction during Q3.

However, the AUD/USD pair couldn’t remain strong for long as details from Australia’s largest consumer, China, rolled out. The February month NBS manufacturing PMI from China shrank for a third consecutive month to 49.2 versus 49.5 market consensus.

Looking forward, the Aussie traders will closely examine Friday’s release of February month Caixin Manufacturing PMI after getting sluggish prints of the NBS reading. The forecast suggests a 48.7 print against 48.3 number marked in January.

It should also be noted that on-going trade-talks between the world’s two largest economies could offer intermediate trade opportunities. Recently, the US trade representative Robert Lighthizer raised doubts over the successful negotiations. Though, the latest report from Reuters confirmed that the trade representatives’ office suspends scheduled tariffs on China until further notice.

AUD/USD Technical Analysis

Upward sloping support at 0.7080 can act as immediate rest for the AUD/USD pair during its further declines while 0.7050 and 0.7000 can please Bears afterward.

Alternatively, 0.7205 acts as immediate resistance ahead of highlighting 0.7265 and 0.7300 resistances.